Bytes accuses its ex-CEO of unauthorised trading

THE governance crisis at computer software company Bytes Technology took another turn today after an investigation accused its long-serving CEO of unauthorised share trading on more than 100 separate occasions.

- Simon Hunt

Neil Murphy, who oversaw the firm’s stock market flotation in 2020, resigned last month after receiving a request from the Financial Conduct Authority for information over his share dealings

Murphy had told the board he intended to respond to the watchdog’s request before announcing his immediate departure after confessing to 119 unauthorised and undisclosed trades. His lawyers have since identified a further 15 trades conducted by Murphy on behalf of his wife.

Bytes shares fell as much as 14% after markets opened today, wiping nearly £200 million from its market cap. They are down about 20% since Muphy’s departure was announced.

The revelations mark the second investigation in a year by Bytes into share dealing by board members, after a previous probe by the firm found non-exec director Alison Vincent had not properly disclosed details of her share purchases in 2022. Vincent quit the board in October, company filings show.